Q: It is known that the scholars disagree as to whether it is obligatory to pay Zakah (obligatory charity) on jewelry that is worn, intended to be worn, or borrowed.What is Your Eminence’s opinion on this issue? Supposing that it is obligatory to pay Zakah on them, is there a Nisab (the minimum amount on which Zakah is due) for this? If there is a Nisab, it seems from the Hadith that indicate the obligation of giving Zakah on jewelry – where the Messenger of Allah (peace be upon him) warned against the punishment of Fire awaiting those who do not pay the Zakah – that there is no Nisab. How is this resolved? 
A: There is a famous controversy among the scholars as to whether it is obligatory to pay Zakah on gold and silver jewelry that is worn, intended to be worn, or borrowed. The preponderant opinion is that it is obligatory, according to the general evidence on the obligation of Zakah on gold and silver.
It was also authentically reported that `Abdullah ibn `Amr ibn Al-`As (may Allah be pleased with them both) said: A woman came to the Messenger of Allah (peace be upon him) with her daughter, on whose hand were two heavy bangles of gold. He (peace be upon him) asked, “Do you pay Zakah on these?” She said, “No.” He (peace be upon him) said, “Would it please you if Allah were to encircle you on the Day of Resurrection with two bracelets of Fire because of them?” She threw them down and said, “They are (I have given them away) for the sake of Allah and His Messenger.” 
It was also authentically reported from Um Salamah (may Allah be pleased with her) that she was wearing some gold ornaments, so she asked, “O Messenger of Allah! Is this Kanz (hoarded wealth, the Zakah of which has not been paid)?” He (peace be upon him) said, “Anything that reaches the amount at which Zakah is payable and its Zakah is paid is not considered Kanz.”  The Prophet (peace be upon him) did not tell her that there is no Zakah on jewelry.
All these Hadith refer to jewelry that reach the Nisab, when they are combined with other evidence, as Hadith explain one another just as Qur’anic Ayahs (verses) explain one another, and also Hadith explain Ayahs and make their generality specific and their absoluteness limited, because all of them are revelation from Allah (Glorified be He). Whatever comes from Allah is not contradictory; in fact they confirm and explain one another.
Therefore, it is necessary that a Hawl (one lunar year calculated from the time a property reaches the minimum amount upon which Zakah is due) must be completed (on jewelry) as is the case with other categories of Zakah wealth, such as money, commercial commodities, and livestock. May Allah grant us success.
 This was published in the book entitled “Tuhfat Al-Ikhwan” by His Eminence, p. 145; and Al-Da`wah magazine, issue no. 1519, dated 8/7/1416 A.H.
 Al-Nasa’y, Sunan, Book on Zakah, no. 2479; Abu Dawud, Sunan, Book on Zakah, no. 1563; and Ahmad ibn Hanbal, Musnad, vol. 2, p. 204.
 Narrated by Abu Dawud in Book on Zakah, Chapter on what is treasure & Zakah on jewelry, no. 1563; and Al-Nasa’y in Book on Zakah, Chapter on Zakah on jewelry, no. 2479.
Fatwas of Ibn Baz > Volume 14 > Book of Zakah > Chapter on Zakah on gold and silver > Obligation of paying Zakah on jewelry that is worn, intended to be worn, or borrowed